https://www.taxtmi.com/caselaws?id=782371 ITAT Mumbai deleted the disallowance made u/s 40A(3) on cash payments treated as expenditure of the assessee-company engaged in agro-based products. The AO had invoked s.40A(3) solely on the basis of the assessee's ledger account in the books of another company, treating the cash payments as its own expenditure. ITAT held that the payments were made on behalf of the other company, were reimbursable, and were not claimed as expenditure in the assessee's books. As any expenditure, if at all, belonged to the other company, no disallowance could be made in the assessee's hands. en-us Fri, 07 Nov 2025 00:00:00 +0530 Fri, 28 Nov 2025 08:24:26 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=782371 ITAT Mumbai deleted the disallowance made u/s 40A(3) on cash payments treated as expenditure of the assessee-company engaged in agro-based products. The AO had invoked s.40A(3) solely on the basis of the assessee's ledger account in the books of another company, treating the cash payments as its own expenditure. ITAT held that the payments were made on behalf of the other company, were reimbursable, and were not claimed as expenditure in the assessee's books. As any expenditure, if at all, belonged to the other company, no disallowance could be made in the assessee's hands. Case-Laws Income Tax Fri, 07 Nov 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=782371